1040x

The IRS has been trying to go through enough paper to completely reforest the Sahara forest.  If the tax doesn't change, they aren't going to want to see it.  Make a note in the client's file and move on to the next project.

If it were me I would not, as you are not changing the accounting method it is just a math error. Going forward use the correct basis, and when you sell or dispose of the equipment, (if applicable) for prior deprecation you use the amount that was allowable. 

Sounds like you have 2 questions.

General Rule: Per Section 179 and §1.179-1 ..  A section 179 expense deduction for section 179 property shall be made on the taxpayer's first income tax return for the taxable year to which the election applies (whether or not the return is timely) or on an amended return filed within the time prescribed by law (including extensions) for filing the return for such taxable year

Regarding the Sec 179 deduction not changing business net income or client's taxable income ... it may be due to a limitation imposed by Sec 179 that prohibits that deduction from throwing the business income into a loss. Any unused Sec 179 claimed is carried over to next year. Therefore, if the business net income did not change because of that limitation, there would be no change in Client's taxable income or tax, but the Sec 179 carryover is locked in due to the original return having been filed.

Regarding necessity of filing an amended return ...  If you decide to change the Sec 179 deduction reported on their original 1040, an amended return is required and a 1040X can now be efiled.to claim the additional Sec 179 and claim the carryover of unused Sec 179 deduction.

BOTTOM LINE: If you merely change the cost basis and leave the Sec 179 the same, the taxable income and tax do not change, so there is no need to file an amended return. But the mix of regular depr and Sec 179 depreciation used will have changed so make appropriate changes so that next year is correct regarding regular depreciation used and unused and regarding the Sec 179 depreciation used and unused. If, however, you want to claim the additional 179 deduction and have it carryover, you need to do it on a timely filed amended return. In order to make the 1040X populate properly, follow the instruction in the HELP section of the program guide.

IF THIS ANSWERS YOUR QUESTION, PLEASE MARK it "SOLVED" SO OTHERS CAN FIND THE SOLUTION FAST. THANKS

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@shoover wrote:

I corrected the amount (in the program) and adjusted the section 179 deduction so total business income did not change. 

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No.  You can't adjust Section 179 in the program unless you actually amend.

So if if you want to change the amount of Section 179, then yes, you need to amend to actually claim that amount of Section 179.

Out of curiosity, how many dollars are we talking about here?  

Unless we are talking significant dollars, I'm sticking with my original game plan and going with the CAGMC philosophy.